Morning Call: Futures Follow European Markets Higher on Fed Reaction

US stock futures point to a higher open on Wall St Thursday, following gains in European markets. Overseas markets today got their first chance to react to the Fed’s decision to keep rates near 0% until late 2014, and most are up more than 1%. Commodities also

look set to get strong follow-through from yesterday, as the Fed laid an inflationary groundwork for the next two years.

The Fed came out with its statement at 12:30 ET, and by 12:35 I tweeted that those statements will be good for equities. Sperling spoke positively on the radio and continued buying (NYSEArca:GLD), since he interpreted that it was good for that precious metals.

In earnings related stock news, Netflix (NASDAQ:NFLX) is up 19% this morning after reporting earnings. Net income fell, but beat expectations and is triggering a major short squeeze in the oft-maligned stock.

Indices then started a powerful move with volume that added some extra juice to a bull move that has been a very enjoyable since the December 20th gap and go. This methodical, very tradable move continues to reward dip buyers, those that rotate amongst sectors, and we also get a break out here and there. Each time it seems like we might take “breather” we build a small floor that doesn’t get violated and then the rally continues.

Don’t fight the trend, but stay on your toes as we extend into bigger resistance. We have Higher Highs and Higher Lows right now so keep with it and I PROMISE—I will try and point out if the composure changes.

With the S&P futures up a few handles we need to look at resistance to the upside. Next zone of resistance is 1331-1347, then the peak from 07/11/11 of 1356.

The 2011 high was 1370, the day we killed Osama Bin Laden. Support is 1318-1322, if we go negative and close below this level then 1305-1308 will be important support.

Las Vegas Sands (NYSEArca:LVS) is set-up I will be watching closely today, and I believe it can touch $50+.

Wynn Resorts (NASDAQ:WYNN) through $121-121.50 opens the door for $129-135.

Scott Redler
Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. T3LIVE.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.

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